A Tax on Buyers Will Shift the

question 55

Multiple Choice

A tax on buyers will shift the

• A)demand curve upward by the amount of the tax.
• B)demand curve downward by the amount of the tax.
• C)supply curve upward by the amount of the tax.
• D)supply curve downward by the amount of the tax.

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Definitions:

Process Costing

An accounting method used when producing homogeneous products, calculating costs at each stage of production.

First-In, First-Out

An accounting method where the earliest stock added to inventory is recorded as sold first.

Equivalent Unit

An equivalent unit is a measure used in cost accounting to express the amount of materials or labor necessary to complete a partially finished product, relative to a finished product unit.

Process Costing

A costing method used in manufacturing where costs are assigned to batches or lots of products, suitable for continuous or repetitive processes.